Do you recommend a Roth or Traditional IRA for a young saver and why?
Both Roth and Traditional IRAs have their benefits, and especially for a young saver it is important to diversify funds to maximize benefits in the long run. There are a number of things to consider when looking at IRAs, but as a "young saver" your main concern will likely be regarding tax benefits and when/how you can access your funds. A Roth IRA provides the benefits of paying the taxes on the funds upfront so that your money can grow tax-free and have tax-free withdrawals once you reach retirement age. A Traditional IRA allows you to make contributions to the account and deduct the amount on your taxes, which means that you will pay the taxes upon withdrawal. Having a mix of both will provide you with a good start, but please do your research. The important thing is that you are starting young! Good for you, LinderU! The more you start to save now, the more successful you will be in the future! Speak with your personal banker and see if they can recommend a financial advisor who can look at your personal financial situation--financial advice should never come in a one-size-fits-all answer. Your situation is unique and should be treated as such. Best of luck to you.
by ecugrad927 years ago
Converting traditional IRA to ROTH IRAI converted my entire traditional IRA to my ROTH IRA in December 2010 and spread the tax bill over 2011 and 2012. Do I have to indicate this on my 2010 tax return and also how does...
by lroche8 years ago
what are the stipulations for withdrawing from an IRA
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.